DuPont Decomposition
Why does MAHLIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 25.3% × 0.14 × 2.29
Latest: FY2026
Profitability
Net Margin
25.3%
41.1% →25.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.13x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
1.70x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by net margin declining (41.1% → 25.3%), leverage rising (1.70x → 2.29x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 41.1% | 0.13 | 1.70 | 9.0% |
| FY2023 | ₹0Cr | ₹0Cr | 16.7% | 0.17 | 2.00 | 5.6% |
| FY2024 | ₹0Cr | ₹0Cr | 46.3% | 0.04 | 2.64 | 5.3% |
| FY2025 | ₹0Cr | ₹0Cr | 16.5% | 0.06 | 3.39 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 25.3% | 0.14 | 2.29 | 8.2% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.